Rapidly increasing wages will only pile pressure on the Bank of England to raise rates yet again next month in an effort to calm inflation. The latest data indicates the rate at which prices are increasing is slowing somewhat, although perhaps not fast enough. Take Coca-Cola HBC, a company that bottles the world’s most popular soda, as an example — they say production costs will increase by a low-teens percentage this year, lower than the nearly 18% it cost last year.
Article content
(Bloomberg) — Rapidly increasing wages will only pile pressure on the Bank of England to raise rates yet again next month in an effort to calm inflation. The latest data indicates the rate at which prices are increasing is slowing somewhat, although perhaps not fast enough. Take Coca-Cola HBC, a company that bottles the world’s most popular soda, as an example — they say production costs will increase by a low-teens percentage this year, lower than the nearly 18% it cost last year.
Advertisement 2
Article content
Here’s the key business news from London this morning:
Article content
In The City
Plus500 Ltd.: The trading platform said it achieved an “excellent” performance, “well ahead” of market expectations supported by more loyal customers and higher revenue per user.
- The company is looking at opportunities for further expansion, particularly in the US futures market, which has been boosted by becoming a clearing firm member of the CME Group exchanges and the Minneapolis Grain Exchange
Coca-Cola HBC AG: The bottling company expects its revenues to increase more than its usual 5% to 6% target next, although the cost of producing a case is expected to rise by a low-teens percentage.
- Still, those cost increases are lower than the 17.7% increase in the cost of producing a case last year, driven by increases in raw materials, energy and production
Advertisement 3
Article content
Barclays Plc: John Miller, who previously helped oversee Barclays’ investment-banking division, will now lead the unit’s global chairman’s group.
- The global chairman’s group, created in 2021, comprises some of Barclays’ most senior bankers and is focused on increasing the firm’s relationships with chief executive officers and boards of directors around the world
Jobs Data: Average earnings excluding bonuses were 6.7% higher in the three months through December from the previous year, the Office for National Statistics said, the fastest pace since records began in 2001, excluding the pandemic period.
- Chancellor Jeremy Hunt said the low unemployment figures, which were also in the data, is a “encouraging sign of resilience” in the labour market
Advertisement 4
Article content
In Westminster
The government is moving ahead with long-awaited plans to regulate “buy now, pay later” lenders. Providers such as Klarna, Clearpay and PayPal Holdings Inc. will be required to give consumers key information about their loans and issue credit that is affordable, while users will have the right to take complaints to the Financial Ombudsman Service.
“For football fans worried by the increasing inequality and concentration of economic power at the top of the game, the message to take from an impending Qatari bid for Manchester United Plc is clear: It’s only going to get worse,” says Bloomberg Opinion’s Matthew Brooker.
In Case You Missed It
Liberty Global Plc said it has purchased a 4.9% stake in Vodafone Group Plc, in a surprise bet that the rival British telecom group’s plans to strike deals and revamp its business will lead to a better share price. Liberty Global is another in a series of new investors in Vodafone including French billionaire Xavier Niel and United Arab Emirates-backed Emirates Telecommunications Group Company PJSC.
Advertisement 5
Article content
The ice cream brand Ben & Jerry’s made the controversial decision to pull out of Israel’s occupied territories. Instead of a humanitarian win, the company set off a legal battle with its owner, Unilever Plc. Here’s a deep dive into the saga.
The West End of London has survived bombings, recessions and the latest global pandemic. From Chinatown to Soho, it’s one of the cultural hearts of the capital. Don’t underestimate its ability to bounce back, says the boss of one of its biggest landlord, Shaftesbury Plc.
Looking Ahead
Mining giant Glencore Plc, investing platform Hargreaves Lansdown Plc and Barclays are among the companies set to update the market tomorrow.
Barclays is expected to report an 82% jump in fourth-quarter fixed-income trading alongside a 6% rise in equities revenue, which should compare strongly against Wall Street peers. This year’s costs look set to be a focal point of the results, according to Bloomberg Intelligence’s Lento Tang and Jonathan Tyce. The investment bank’s planned bonus cuts help counter inflationary pressures and aid cost-to-income ratio improvement, though that may be partially offset by a softening in the dollar against the pound with regard to US revenue.
Given the economic uncertainty, the bank might opt to delay another share buyback, they said. European rivals including BNP Paribas SA and UBS Group AG announced billion-dollar repurchase plans this year, while Deutsche Bank AG stopped short of making a fresh buyback pledge amid a regulatory review.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
Share this news on your Fb,Twitter and Whatsapp
Times News Express:Latest News Headlines
Times News Express||Health||New York||USA News||Technology||World News
